1/ At Paxos, we believe the only way to establish & maintain safety & transparency for customers is thru rigorous oversight from a prudential regulator. A few thoughts here and in this thread… paxos.com/licensing-regi…
2/ We’re in the midst of a monumental shift of financial market infrastructure. The future of an open, #digital economy rests on upgraded infrastructure replacing antiquated banking systems.
3/ At the heart of this transition is the adoption of #stablecoins - digital $USD that are accessible to anyone at any time.
4/ But to be considered a real #stablecoin, it must hold its value not just during good times, but during all times. Both $USDC and $USDT “stablecoins” are only stablecoins in good times.
5/ We called attention to their lack of regulation and reserve practices here paxos.com/a-regulated-st…
6/ The issuers of these tokens are prioritizing yield for themselves over stability & security of the reserves. Because neither token is regulated, the issuers are self-policing.
7/ There is a critical difference between being licensed and being regulated. Licensing does not equal regulation.
8/ Paxos & Paxos-issued stablecoins $PAX and $BUSD, however, are regulated. Both the issuer and the tokens are overseen by the #NYDFS to ensure integrity and security for customers.
End/ Before using any stablecoin, it's critical to understand if the issuer is being held accountable by a prudential regulator. If not, your funds and consumer protections are at risk.
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